From September 22, India implements a new GST system with fewer slabs, aiming to reduce tax burden and simplify rates.
India Simplifies Tax
Old GST slabs of 12% and 28% are largely slashed. Most consumer goods and essentials move to 5% or 8%.
Fewer Tax Slabs, More Relief
Life-saving drugs become tax-free; textiles move from 12% down to 5%; many daily consumer items become more affordable.
Essentials & Medicines
Goods from food items to electronics saw changes. Essentials became cheaper, while a few luxury items shifted to higher tax rates.
Prices Of 375 Items Revised
Small traders praised simplification, while some manufacturers feared adjustment costs and confusion during the initial transition to the new system.
Traders & Startups Respond
In a letter to citizens, he called GST reforms “a big step” towards a simpler, transparent, unified tax system and asked for public cooperation.
Prime Minister Narendra Modi
Ashwini Vaishnaw said, “the most ambitious and people-centric GST reform till date,” calling it an “Economic Diwali” for the people, claiming that prices of nearly all essential household items have come down.
Railway Minister
“GST cuts are Modi’s Diwali gift to the nation. Lower textile GST from 12% to 5% tax exemptions on life-saving drugs and essential items will enhance purchasing power generate employment.”
CM Yogi Adityanath
He tweeted that the Congress had been demanding GST 2.0 “since July 2017 itself” and accused the government of “claiming sole ownership” of the reforms, despite them being decisions of the GST Council.
Jairam Ramesh (Congress)
“GST rationalisation and the reduction in rates on a range of goods and services are welcome but (come) eight years too late”
P Chidambaram
He echoed Mamata Banerjee’s critique, accusing the BJP of delaying rate cuts for political gains, and questioned why the reform was coming only now.